Analysis of methods for calculating the accounting beta coefficient in world practice

A widely used model for estimating discount rates in equity investments is the Capital Asset Pricing Model (CAPM), which is based on observable market prices of a company's shares and incorporates beta coefficients. However, this model has limitations, such as the need for reliable market data, and there are alternative approaches to estimating beta coefficients for non-listed companies. This article examines the literature on methods for calculating these coefficients using accounting indicators. The most common approach is to use annual data over a period of five years or more. In addition to this, ROE, ROA and NI indicators are frequently utilized among the data set.